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Article: Industrial policy leads to propping up businesses. (problem with Bill Clinton's proposed energy and other taxes and their accompanying exemptions) (Column)
- Article from:
- Insight on the News
- Article date:
- July 19, 1993
- Author:
CopyrightCOPYRIGHT 1993 News World Communications, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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The current debate on a federal energy tax serves as a useful reminder that industrial policy comes in many forms, and that it almost inevitably leads to some form of protectionism. Unfortunately, what the debate hasn't revealed is the price of economic inefficiency and job loss that results.
The Reagan and Bush administrations were generally hostlle to tax preferences, industrial policy and protectionism, although in politics it is always difficult to be totally pure. The unifying theme was to rely as much as possible on the marketplace, as opposed to government intervention and distortion, to achieve economic growth and international competitiveness. The ...